How do I account for local wage tax refund?

[taxdogg99]

Local city wage taxes were taken out of my pay and included on my W2.  During the 2020, I worked from home and applied for and received a wage tax refund from the city.  How do I account for the refund on my Fed, State and local tax filings?  

[LenaH]

We'd love to help you complete your tax return, but need more information. Can you please clarify your state, as well as the locality in which you paid taxes and got a refund?  

[taxdogg99]

Yes - PA and wage tax refund was for Philadelphia (related to tax withheld for 2020)

[taxdogg99]

Still looking for a response on this one...

[ToddL99]

Unless you itemized deductions and claimed those taxes as a state/local tax deduction, you do not have to report the refund on any tax return - federal or state.

[taxdogg99]

Should I expect to get a 1099-G from Philadelphia that I would need to report on my 2021 return? 

[ToddL99]

If you received the refund in 2021, you may get a 2021 1099-G from Philadelphia. It depends entirely on the city tax office's policies and procedures in matters like these. 

Again, you only need to report state and local/city tax refunds if you claimed a state/local tax deduction on your federal return.

[green_dragon57]

Just so I am clear:

I filed a 2020 federal tax return that includes on 1040 schedule A an itemized deduction for state and local income tax on line 5a. 

In 2021, I received a reimbursement of Philadelphia, PA city wage tax I was paid for time in 2020 working remotely from home not in the city of Philadelphia.

Based on ToddL99's message indicating "you only need to report state and local/city tax refunds if you claimed a state/local tax deduction on your federal return",  do I now need for my 2021 federal and state tax return to add the amount of the refund as additional income?

[Vanessa A]

Yes, you will need to claim the refund amount as income.  You should be getting a 1099 G that you will just enter into the income section of TurboTax. You will enter it under Other Common Income.  Tax Refunds or 1099 G.

[green_dragon57]

Thank you!